It is very important to start good credit habits with your very first credit card. It is so easy to get caught up in using a credit card for every purchase, feeling like it is "free money" for those who have never had a credit card before. But, by doing this, a person can face a lifetime of bad credit decisions, especially if they are uneducated.
Instead, it is important to view a starter credit card as a tool – mainly as one to build credit for larger purchases like a car or a home later in life. Thus, it is not BAD to use the starter card for items like a new outfit, school supplies, or other things. But the user should definitely have the funds to pay in full at the end of a billing cycle.
Also, I would recommend NOT using it for things like gas or food – there is nothing tangible to show at the end of the month.
Starter cards can be a very helpful tool if used correctly, and a very dangerous obstacle if used frivolously. But with a bit of common sense and a little self-control they can help young people or students get off to a great start on building credit while still in school!
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